Quote:
Originally Posted by Caymus
The DOW has health care related stocks which haven't done well since Brian Thompson' s murder. The more diversified S&P is holding up and the Nas is still near an all-time high.
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Hmmm, the SPYV, the value sector of the SP500, using 430 of the SP500 stocks,
hasn't been doing well for the last 2 weeks plus. . . .
The more diversified SP500 is not really diversified, it is more capitalization weighted, and the year end performance race is on in the mega cap stocks, diversified might imply more equal weights of different assets, right now, the SP500 is not really diversified, which becomes an increasing risk issue.
Also note, that the SPYV value etf has done a
Servpro move, erasing the rally as if it never really happened. . SP500 hovering just below the highs. .
The problem is that the interest rate inflation risk is growing with the continually increasing government spending. TLT, the etf holding 20 year US Treasury bonds, has lost over 10 % from the beginning of September, high after the Fed interest rate cuts. . . and last week was really bad after good economic news. .
so what are the bond vigilantes starting to get stirred up about?